Benefits of Buying Property in Woman’s Name
In modern times, the idea of buying a property in a woman’s name has many benefits. For instance, if you purchase a property in your wife’s name, you will not only make her happy but also successfully impress her family. To increase the number of women investors and to boost ‘women empowerment,’ the Government of India has introduced extensive policies and home loan benefits for women.
But, the cherry on the top is that you might save 1% to 2% of the property value, as many state governments provide a concession on stamp duty for women. Stamp duty is a tax that is paid to the government when purchasing a property and getting it transferred to your name. For example, in Delhi, a woman needs to pay only 4% while men are charged with 6% stamp duty. Whereas, the Government of Maharashtra has authorized equal stamp duty for all genders.
Listed below are some more advantages of buying a property in a woman’s name!
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Home loan benefits
When people apply for a home loan the biggest factor they consider is the rate of interest. If a working woman applies for a home loan, she can enjoy exclusive home loan benefits especially introduced for women. Additionally, many banks provide a lower rate of interest for women borrowers.
For instance, the rate of interest on a home loan for working women can be around 8.55%, while for her male counterparts, it is 8.60%. This lower percentage can also be redeemed if a woman is a co-applicant. Hence, it is safe to say that you can register the property under a woman’s name and reap the benefits.
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Tax benefits
The second benefit of buying a property under a woman’s name is the tax rebates that women can enjoy. If it is a self-occupied property, an additional deduction of interest summing up to an amount of Rs 1.5 lakh every financial year will be offered for women property owners.
Some other benefits are, if the husband incurs a loss or debt and the property is registered in the wife’s name, it cannot be attached to cover the loss. Joint ownership is beneficial too if both, the husband and the wife take a home loan and claim a tax deduction for the interest to be paid on the loan.
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Stamp duty charges
In many parts of India, the Government has set a lower stamp study charge for women property owners as compared to men. While the exact percentage may vary, many states are adopting and embracing this idea to support women homeowners. While some states are leading the way, with Jharkhand setting an example. Women property buyers in Jharkhand pay Rs.1 as stamp duty. This is a great monetary relief for people shouldering the cost of the home, thus making it a good idea to register the property in a woman’s name.
Furthermore, here are few more things that you need to keep in mind when registering property in a woman’s name.
- It is advised for the woman to have an alternative source of income to buy a property. If there is no regular income, the property will be considered an asset.
- If your wife is a homemaker, registering it in her name can lead to a Benami property transaction that can complicate the entire process. So to avoid any complications, it is better to opt for co-ownership in this situation.
- Also, if a woman does not have a source of income, she may not be able to get a home loan at all as most banks refuse to provide a home loan to a person with no fixed income.
- If the husband and the wife have a combined income to buy the property, the rental income earned from the property will be tax separately.
- If there is any dispute over the property in the future, the husband is equally accountable even if the property is registered in the name of his spouse.
These were the few benefits of registering a property in a woman’s name. It is important to understand the terms and conditions of each benefit to make the most of this and avoid any kind of deception.
Also, Read: 10 Important Things To Consider Before Taking A Home Loan